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Henry Schein beats quarterly profit estimates on lower costs
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Henry Schein beats quarterly profit estimates on lower costs
Nov 6, 2024 12:25 AM

Nov 5 (Reuters) - Dental products distributor Henry

Schein beat third-quarter profit estimates on Tuesday,

as a series of cost-saving measures helped counter tepid demand

and slow recovery from a cyberattack it disclosed in October

last year.

The company, which supplies products such as dental implants

and personal protective equipment (PPE), had faced disruptions

in manufacturing and distribution units after the cybersecurity

breach, which caused it to take some of its systems offline.

The results "showed strong cost discipline in the face of a

tough operating environment," Leerink Partners analyst Michael

Cherny said in a note.

The company raised the lower end of its adjusted annual

profit per share forecast to $4.74 from a prior view of $4.70,

while maintaining the upper end at $4.82.

Analysts on average expect its annual profit to be $4.75 per

share, according to data compiled by LSEG.

Henry Schein said it is on track to meet its goal of

saving $75 million to $100 million by the end of next year as

part of a restructuring plan announced in August.

The company recorded $48 million in restructuring costs in

the quarter ended Sept. 28.

Its third-quarter adjusted earnings came in at $1.22 per

share, beating estimates of $1.17.

However, its quarterly revenue of $3.17 billion missed

estimates of $3.24 billion, hurt by lower sales of PPE and slow

recovery from the cyberattack.

Sales at its dental unit, which supplies implants and

tooth-whitening products, among other items, came in at $1.85

billion, below expectations of $1.89 billion.

Henry Schein's selling, general and administrative expenses

came in at $724 million, compared with expectations of $796.61

million.

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